Bank officials await circular, customers wait for interest rate relief

Chhatrapati Sambhajinagar

The Reserve Bank of India reduced the repo rate by 0.25% on April 9, following a similar cut in February. Despite a total 0.50% reduction in two months, many public sector bank customers still wait for a cut in their home loan interest rates.

Only a few banks, like SBI, Bank of Maharashtra, and PNB, have announced reductions. However, customers of several banks haven’t seen any change yet. Bank officials say they are waiting for official circulars to implement the new rates.

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Home loan interest rate cuts by banks

Bank

Reduction

New Interest Rate

State Bank of India 0.25% From 8.65% onward

Bank of Maharashtra 0.25% From 7.85% onward

Indian Overseas Bank 0.25% From 8.85% onward

Bank of India 0.25% From 7.90% onward

Punjab National Bank 0.25% From 8.15% onward

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Circulars yet to reach branches

Branch managers of SBI and Bank of Baroda confirmed the rate cut but said they hadn’t received official circulars. A Bank of Maharashtra official mentioned that some customers have started receiving SMS updates.

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Banks should act without delay: union leader

Devidas Tuljapurkar, Coordinator of the United Forum of Bank Unions, criticized delays by banks in applying the repo-linked rate cut. He said banks must not block the RBI’s efforts to improve liquidity and reduce borrowing costs.

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Customers can explore other banks

CA Rohan Achalya advised borrowers to compare loan rates across banks. If the current rate is higher, transferring the loan to a bank with a lower rate is a good option. Strong negotiation skills can help in this process.